Polished Diamond Prices Rise 2.4% in April

Average
asking prices for polished diamonds on the computer network RapNet increased
2.4 percent during April, according to the Rapaport Research Report “Positive &
Cautious.”

Half
caraters were up 3.5 percent, one carats up 2.4 percent, and three carats
remained flat. Prices of small, inexpensive diamonds at Rapaport Auctions
continued to strengthen during the month. Average prices on RapNet were 19.6
percent above the levels seen at the end of April 2010.

According
to the report, rough prices continued to rise, particularly for large, top
quality rough. Spot tender prices also increased at a slower pace. Supply
remains in line with 2010, as production grew by about 3 percent in the first
quarter of the year. Manufacturers still appear to be speculating on rough by
holding goods in inventory rather than filtering itthrough for manufacturing,
resulting in polished shortages.

Dealers
and manufacturers slowed their activity in April, but have maintained a
positive short-term outlook for the market, according to Rapaport.  The
slight lull may be a temporary calm before the storm as expectations are high
for strong jewelrysales in May and positive Las Vegas shows. 

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